Audit 318771

Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activity of the Sault Ste. Marie Tribe of Chippewa Indians, and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards ("Uniform Guidance"). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. NOTE B - COST REPORTS Management has reported that expenditures in the Schedule of Expenditures of Federal Awards are equal to or derived from amounts reported in the annual or final cost reports. Unallowed differences, if any, have been disclosed to the auditor. NOTE C - FINANCIAL REPORTS The financial reports including claims for advances and reimbursements and amounts claimed or used for matching, are timely, complete, accurate and contain information that is supported by the books and records from which the basic financial statements have been prepared. NOTE D - PASS-THROUGH SUBAWARDS The Tribe receives certain federal grants as subawards from non-federal entities. The Pass-through Number represents the facility's provider I.D. number. Some of these numbers were either not available or not provided by state or local administering agencies for the program reported in the accompanying schedule. Pass-through entities, where applicable, have been identified in the Schedule with an abbreviation, defined as follows: Pass-through Agency Abbreviation Pass-through Agency Name MDE Michigan Department of Education MDHHS Michigan Department of Health and Human Services MSP Michigan State Police SOM State of Michigan UPAAA Upper Peninsula Area Agency on Aging NOTE E - INDIAN HEALTH SERVICE ("IHS") BUYBACKS FOR PURCHASED SERVICES Purchased services are reported in the schedule at the fair value of the services rendered. The estimated value of purchased services for the year ended December 31, 2023, totaled $558,472 for the IHS programs. NOTE F - FOOD DISTRIBUTION Non-monetary assistance is reported in the schedule at fair market value of the commodities received and disbursed. NOTE G - RELATED PARTIES Throughout the normal course of operations, various funds of the Tribe interact with fund transfers, sales, expenses and taxes. These transactions are approved as a part of the system of internal control. Specifically, the Tribe contracts a significant portion of its construction projects provided by Federal funds to Sault Tribe Construction, an internal service fund of the Tribe, and purchases of fixed assets from Gitchi Auto, Home and Recreation. Northern Travel, an internal service fund of the Tribe, controls travel accommodations, airfare, etc. for some programs. The Self Insurance Fund provides significant coverages recorded as Federal grant expenditures. The Tribal Centers, Building and Equipment Fund leases space to programs. NOTE H - DE-MINIMIS INDIRECT COST RATE The Tribe did not use the 10% de-minimis indirect cost rate under the Uniform Administrative Requirements. De Minimis Rate Used: N Rate Explanation: The Tribe did not use the 10% de-minimis indirect cost rate under the Uniform Administrative Requirements.